- Steinway Pianofabrik, in Hamburg, at Schanzenstrasse 20-24, opens. William Steinway receives a telegram from his brother C.F. Theodor: “Sendung fertiger pianos aufhören Briefe Näheres firma heute proclamirt Steinways Pianofabrik Hamburg mit Inhaber Steinweg gen. Steinway”. (“Cease shipment of finished pianos. Details by letter. Proclaimed today Steinway Pianofabrik Hamburg, owners Steinweg jointly with Steinway”.)
- For the next several years Hamburg factory will not be a part of Steinway & Sons, but rather a separate business entity, owned by William Steinway and his brother C.F. Theodor Steinweg, who equally share $140,000 investment. German incorporation documents name C.F. Theodor Steinweg as the “Sole Proprietor” (probably for legal reasons). For several years after its inception, the factory will depend on the New York business: it will buy piano plates, action frames, lumber, and most importantly, the unregulated and unpolished pianos from Steinway & Sons in New York, and transport them to Hamburg, where the pianos will be sanded, regulated, and polished, using French finishing process (applying shellac instead of varnish, without a brush, by rubbing it on repeatedly with a piece of cloth), more suitable for European climate. Steinway & Sons in New York will then re-purchase the finished Hamburg pianos (20% to 45% cheaper than those made in New York), to sell them in London and through dealers and agents in Europe.